• Uber has ended talks to onboard BluSmart's 5,000 EVs over valuation and regulatory concerns, dealing a fresh blow to the struggling startup.
  • BluSmart has also halted new ride bookings after SEBI accused its promoters of misusing EV loan funds for luxury purchases.

Electric ride-hailing startup BluSmart has hit another stumbling block. According to a report by Mint on May 5, Uber has walked away from talks to bring BluSmart’s 5,000 electric vehicles onto its platform, citing valuation disagreements and regulatory issues.

The negotiations were part of BluSmart’s broader revival plan, where the Gensol Engineering-owned firm was expected to transition into a fleet partner.

However, sources cited by Mint revealed that Uber found the proposed price unrealistic, particularly given the steep depreciation associated with electric vehicles, a factor BluSmart reportedly failed to fully account for in its valuation. The report stated that Uber has now "withdrawn its interest" entirely.

This marks the second major setback in just a few weeks for the Anmol Jaggi-led firm. Previously, BluSmart was unable to close a ₹315 crore deal with Chennai-based Refex Group, which involved the sale of nearly 3,000 EVs. That deal too fell through under similar concerns about viability and value.

Compounding BluSmart’s woes are complications surrounding the ownership and financing of the vehicles in question. Gensol had secured ₹663 crore in loans from Power Finance Corporation and the Indian Renewable Energy Development Agency to purchase the EVs, which were then leased to BluSmart.

Whether these vehicles could be further sub-leased to Uber raised additional legal and financial red flags. According to the Mint report, advisers to Gensol warned against taking any “risks” that could jeopardize the already fragile financial setup.

Meanwhile, BluSmart’s operational troubles continue to mount. The company has suspended new ride bookings across key markets, including Delhi-NCR, Mumbai, and Bengaluru.

This followed a separate controversy involving alleged financial misappropriation. The Securities and Exchange Board of India (SEBI), in an interim order, accused promoters Anmol and Puneet Singh Jaggi of diverting loan funds, originally intended to support BluSmart’s EV purchases for personal luxuries. These included a luxury apartment in Gurugram’s upscale DLF The Camellias and premium golf equipment worth ₹26 lakh.

The developments have cast a shadow over BluSmart’s future, raising questions about both its governance and sustainability. The company, once seen as a flag-bearer for India’s EV ride-hailing sector, now finds itself entangled in financial and legal challenges that threaten its survival.

As one source told Mint,

“The interest from Uber was conditional on several financial and operational guarantees that BluSmart was simply not in a position to meet.”

With investor confidence shaken and regulatory scrutiny tightening, BluSmart faces an uphill road to recovery, one that may require more than just strategic partnerships or capital infusions to navigate.

Edited by Harshajit Sarmah